The Income Tax (IT) Department issued a notice u/s 148 to the petitioner’s deceased father on 27th March 2015 seeking to reopen the assessment for AY 2008-09. The notice was returned as unserved by the postal department endorsing on it the remarks “Addressee expired”. The authority, on 15th July sent a letter to the petitioner requesting him to receive the notice returned and to furnish all the necessary documents for the reassessment proceedings initiated by the department against the deceased along with all the details of his legal heirs.
On receiving the letter, the Petitioner wrote to the ITO pointing out that his father ShriInder Pal Singh Walia had expired on 14th March 2015 and that the proceedings initiated under Section 148 of the Act were barred by limitation. Additionally, it was stated that he was unaware of the financial affairs or transactions carried on by his late father.
The ITO refused to admit this and took a stand that since the intimation of the death of ShriInder Pal Singh Walia on 14th March 2015 was not received by her office “therefore the notice was not issued on a dead person”.They also contended that the family members refused to receive the notice.
Proceeding on the above two erroneous stands, the Department compounded its errors by insisting on continuing with the proceedings under Section 147/148 of the Act. It is at that stage that the Petitioner approached this Court.
The petitioner approached the High Court challenging the notice and proceedings against his deceased father. While deciding the case, the Court found that it is there was no occasion for the family members to refuse such notice. The postal authority had correctly noted that the person to whom the notice was addressed had indeed expired by then.
While quashing the above said impugned notice, the High Court made it clear that since the assessee is expired, the Department can initiate proceedings against the legal heirs subject to the conditions specified u/s 159 of the Act.
Read the full text of the order here.
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